Published on 17 May 2022 on Insider Monkey via Yahoo Finance
In this article, we discuss 10 penny stocks that pay dividends. If you want to see more affordable dividend stocks, click 5 Penny Stocks that Pay Dividends.
High-risk public businesses with low market capitalization and prices under $5 are categorized as penny stocks. Amateur and retail investors usually begin their trading journeys by pouring their limited resources into penny stocks with growth catalysts, hoping they will explode in the future.
The lack of disclosures and publicly available information, short performance history, and liquidity problems make penny stocks risky investments. However, with proper research and due diligence, investors can make big bucks on their investments as well. What makes penny stocks interesting for traders is the unlimited potential for growth that they offer. For example, Ford Motor Company (NYSE:F), Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN) once traded as penny stocks, and now they are some of the biggest industry leaders. Early investors can often cash out lucratively when penny stocks take off.